Electrical permits are important to everyone and not just your insurance company. A recent conversation with a local electrical inspector has reaffirmed what our electricians have been explaining to homeowners for years. If regulated electrical work is completed without an electrical permit in place, your homeowner’s insurance policy will be compromised. An insurance claim will likely be denied in the event of a disaster. The inspector stated that this has been a hard lesson for some homeowners in recent incidents in the Lower Mainland.
I know Electrical Permits are Important, but can’t this just be my little secret?
Nope. Electrical permits are important, to the extent that they fall under the public Freedom of Information Act. So your secret is out there for the world to see. This means that anyone, from insurance providers, realtors and potential home buyers to your next door neighbor, can search your property’s electrical permit history by just contacting the regulating authority in your area and providing your street address.
Depending on the age of your home, the first electrical permit may be from when the home was built and subsequent permits will follow in chronological order. Permits will state the scope of electrical work covered by the permit, in addition to the name and qualifications of the person responsible for the electrical work.
The absence of an electrical permit for regulated electrical changes also speaks volumes. It sends a very clear message to an investigator implying that electrical work was likely done by an unlicensed, amateur installer and therefore safety and quality of workmanship are suspect. This gives insurance companies all the reason they need to refuse claim coverage.
Potential home buyers will usually shy away from a home that holds electrical secrets. In addition to your asking price, buyers will imagine a long list of possible expensive repairs to deal with, not to mention the fear of moving into a house with obvious unauthorized electrical changes.
Homeowners need to understand that electrical permits are important and the risks in avoiding the electrical permit to save a few dollars is just not worth it.